(Source: Board of Governors of the Federal Reserve)
Bloomberg is reporting today on the remarks being made by Morgan Stanley and Bank of America CEOs to their shareholder conferences.
According to the story, John Mack, CEO of Morgan, and Kenneth Lewis, CEO of BofA, have this to say:
“I had a hedge fund say to me, ‘I can hire anyone I want from you and Goldman,’” Mack said at the bank’s annual meeting today in Purchase, New York, referring to rival Goldman Sachs Group Inc. Some units lost a dozen people, he said, without identifying them. Lewis, speaking at his annual shareholder gathering in Charlotte, North Carolina, also blamed the restrictions for departures.
“We have lost strong revenue generators over the past three months to competitors that are not facing the same compensation restrictions that we are,” Lewis said.
I believe the internet hipsters would say, “Call the Wahmbulance!”
Me thinks the CEOs protest too much. Guess what, guys? When you need my money to shore up the balance sheets at your banks, the very least you could do is limit your expenses. When the taxpayer is paid back with interest you can go back to your whiz kid schemes. Only next time, let’s hope the politicians in Washington let you die on the vine.
Save the “poor me” routine for your fellow travelers in the locker room at the country club.
While some of the lenders may need extra cash injections from the government, most of the capital is likely to come from converting preferred shares to common equity, the people said. The Federal Reserve is now hearing appeals from banks, including Citigroup Inc. and Bank of America Corp., that regulators have determined need more of a cushion against losses, they added.
By pushing conversions, rather than federal assistance, the government would allow banks to shore themselves up without the political taint that has soured both Wall Street and Congress on the bailouts. The risk is that, along with diluting existing shareholders, the government action won’t seem strong enough.